Sheep sector 'at a critical point'
The family farm income on sheep farms dropped 21% in 2022, "a level of reduction the low-income, vulnerable sheep sector does not have the capacity to absorb", the IFA warned.
"Difficulties" in the sheep sector are increasing as factories are dropping prices again, the Irish Farmers' Association has warned.
IFA national sheep committee chairman Kevin Comiskey said that the sheep sector in Ireland is "at a critical point" with market prices failing to reflect the production cost increases farmers have had to endure over the past two years.
Gross margins on sheep farms fell by 14% while net margins fell by 81% to just €7 per ewe in 2022, which included the Sheep Welfare Scheme payment, the IFA said.
"Weak market prices this year have compounded the problem and are effectively leaving every sheep farmer in a severe loss-making situation," Mr Comiskey said.
Prices are averaging over 40c per kg behind 2022 for the year to date on hoggets and lambs which equates to a further cut of over €9.5m in sheep farmers’ incomes for the year, the IFA estimates.
"Sheep farmers do not have the capacity to endure this level of income loss and immediate action is required," Mr Comiskey continued.
"Factories and Bord Bia must do more in the marketplace to return a viable price for sheep farmers.
"The Minister for Agriculture must deliver meaningful targeted payments of at least €30 per ewe to provide economic viability on sheep farms."
The family farm income on sheep farms dropped 21% in 2022, "a level of reduction the low-income, vulnerable sheep sector does not have the capacity to absorb", the IFA warned.
Direct payments contributed 110% to overall family farm incomes in 2022 and a targeted €30 per ewe payment is essential to support the sector, according to the association.
